The Basic ROI Formula

Marketing ROI equals the revenue generated from marketing minus the cost of marketing, divided by the cost of marketing. If you spent $10,000 on ads and generated $40,000 in revenue, your ROI is 300%.

Simple enough in theory. The challenge is accurately connecting revenue back to specific marketing activities.

Set Up Proper Tracking First

Before worrying about attribution models, make sure the basics are covered. Install conversion tracking on your website. Use UTM parameters on every campaign link. Connect your CRM to your ad platforms so you can track leads from first click through to closed deal.

Google Analytics 4, Meta Pixel, and LinkedIn Insight Tag are the essentials for most Australian businesses running digital campaigns.

Choose an Attribution Model

Last click attribution gives all credit to the final touchpoint before conversion. It is simple but misleading because it ignores everything that came before. First click attribution credits the channel that introduced the customer. Multi-touch models spread credit across all interactions.

For most businesses, a data driven or linear attribution model gives the most honest picture. The right model depends on your sales cycle length and the number of touchpoints involved.

Track Leading Indicators

Revenue attribution takes time, especially in B2B where sales cycles can stretch for months. Track leading indicators like cost per lead, lead quality scores, and pipeline velocity so you can make faster decisions about where to allocate budget.

Do Not Forget Offline Channels

If you attend trade shows, run print ads, or rely on word of mouth, these channels need tracking too. Use unique landing pages, dedicated phone numbers, or simple "how did you hear about us" surveys to capture offline attribution.

Review Monthly, Adjust Quarterly

Check your marketing performance weekly for anomalies, review in depth monthly, and make major budget shifts quarterly. Reacting too quickly to short term fluctuations leads to whiplash. Waiting too long means wasting money on underperforming channels.